Kerala milk cooperative giant Milma to raise prices by Rs 4 per litre from June 1, fuel and production costs cited

Milk prices in Kerala will go up by Rs 4 per litre from June 1 after dairy cooperative major Milma approved a price revision citing rising production, procurement and distribution costs amid mounting pressure on farmers.The decision was taken at a meeting of the Board of Directors of the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as Milma, on Wednesday.Milma Chairman K S Mani said the bulk of the hike would directly benefit dairy farmers. “It has been decided to increase the price by Rs 4 per litre from June 1. As Milma is a collective of farmers, the decision is to pass on its lion’s share to them,” he said.Thus, with the revised rates coming into effect, a 500 ml packet of homogenised toned milk, currently priced at Rs 26, will cost Rs 28.PTI sources said the previous Left government had earlier cleared Milma’s recommendation for a price hike, but implementation was delayed because of the election model code of conduct.Of the Rs 4 increase per litre, farmers will receive Rs 3.35, while dairy cooperative societies will get 25 paise. According to Milma, more than 83 per cent of the additional amount generated through the hike would be passed on to milk producers.

Following the revision, the procurement price paid to farmers will rise from Rs 40.04 to Rs 43.39 per litre.The cooperative said the revision had become necessary due to a sharp increase in operational costs and declining returns for dairy farmers. It cited drought-like conditions in parts of Kerala after an intense summer, rising fuel prices, higher transportation expenses and increased costs of packaging materials such as plastic bottles and cups.Milma also pointed to rising procurement costs for milk sourced from neighbouring states to meet local demand, along with supply-chain disruptions and escalating operational expenses linked to global fuel price fluctuations.